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Living overseas

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New UK tax residency rules - warning - you need to be aware of the changes

8 replies

mateysmum · 12/06/2013 18:54

Just a heads up to all the expats, DH has been looking at the new "statutory residence test" as he plans to come back on shore next year and it has made him grumpy all week. Obviously the impact will vary according to where you live and your circumstances but I think a lot of expats could be caught out unwittingly and depending on your circumstances, that could be a pretty expensive mistake.

This is not yet law, but when it is passed, it will apply retrospectively to the current tax year.

Previously, the rule was - spend more than 90 days in the UK and you were tax resident. This simple rule is no more and the guidance is now 101 pages and counting.
Unless you never intend to set foot in the UK again, I recommend that you familiarise yourself with the new rules. There are now a whole load of criteria about ties to the UK and hours worked overseas. EG: if you have access to UK accommodation that counts against you - doesn't need to be yours, it could be the ability to stay at a relative's house. If you have a child at a UK boarding school who spends a couple of weeks of the holidays in the UK, that counts against you.
You are now expected to keep detailed records to prove you are non resident and eg. if you are in the UK and travel more than 3 hrs to the airport to take a plane out on business, that counts as a UK working day, even if you do no actual work.

Here is the link new rules

Also recommended for those who don't live overseas but require a cure for insomnia.

Enjoy!

OP posts:
pupsiecola · 12/06/2013 20:04

Good to know. Thanks for posting. Have delegated sorting this out to DH so have just cut and pasted your post.

mateysmum · 12/06/2013 22:14

Glad somebody thinks it's useful Pups!

OP posts:
NomDeClavier · 12/06/2013 22:15

Oh cripes. My pregnant brain just cannot cope with that.

Salbertina · 13/06/2013 07:36

Thanks, will check!

RantyMcRantpants · 13/06/2013 07:43

I'm getting sorry the page you are looking for cannot be found on that link.

FringeEvent · 13/06/2013 07:44

"We're sorry but the page you're looking for cannot be found"

Hm, the link in the OP is broken.

Is this it?

OddBoots · 13/06/2013 07:52

I don't know the accuracy of it for sure as I was only looking into it for a friend but this page seems to be a good summary of it all.

mateysmum · 13/06/2013 09:46

The link seems to have gone down since yesterday as I can no longer find the guidance note on the HMRC site either whereas a couple of days ago it popped up on a search criteria of "statutory residence test guidelines". Perhaps I'm being stupid or maybe as these were still draft guidelines, they are being updated.

I have them on a PDF download so I could PM them (do pm's allow attachments?) if anyone wants them.

There are quite a few summaries available on-line but if you do not automatically qualify, the devil is in the detail.

OP posts:
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